Last-gasp deal done to build commercial scale CCS plant

Mining at Hatfield colliery

A deal is thought to be close to save one of Europe's first commercial-scale carbon capture and storage (CCS) projects, Recharge has learned.

Senior sources in Brussels say that Powerfuel, the UK company proposing to build a 900MW coal gasification plant with CO ² capture at the Hatfield colliery in Yorkshire, north England, is about to sign a deal with 2Co Energy to secure its finance.

Powerfuel was allocated €180m ($240m) last year through the European Economic Recovery Package to develop the £2.7bn ($4.25bn) project, but has been prevented from applying for the funding, which must be used by the end of the year, because of uncertainty over finance in the UK..

The…

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